Singer Amends Podolsk Acquisition Agreement; to Receive $23.6 Million Refund.

NEW YORK--(BUSINESS WIRE)--AUG. 17, 1999--

The Singer Company (NYSE:SEW) said today that it had entered into an amended agreement to acquire certain property and equipment in Russia, used primarily to produce industrial sewing machine arms and beds.

The amended agreement calls for the purchase price of $30.6 million to be deducted from a $50 million deposit Singer transferred upon signing the original agreement in December 1997 and for the balance of $23.6 million, including interest, to be refunded to Singer according to a schedule through October 1, 1999. Closing of the transaction is subject to fulfillment of certain closing conditions.

In December 1997, Singer had entered into an agreement to acquire a 100 percent interest in certain corporations holding approximately 84 percent of the issued and outstanding capital of A/O Concern Podolsk, a company organized under the laws of the Russian Federation with property holdings and production equipment in Podolsk, Russia. Pursuant to the original agreement, Singer transferred $50 million on signing, which was to be held in a bank deposit.

The closing of the agreement was subject to obtaining, and the acceptance by the contracting parties, of a fair market value appraisal by an internationally recognized independent appraisal company to determine the final purchase price, and to the satisfaction of certain other closing conditions, including approval by the company's directors. An appraisal was delivered to the company in 1998, but was not accepted. The new, amended agreement replaces this former agreement.

Singer is one of the most widely recognized and respected brands in the world. The company is an international retailer and distributor of consumer durable products in 150 countries. The acquisition of Pfaff in 1997 made Singer, already the world leader in consumer sewing, one of the largest industrial sewing machine companies, as well.

The quality name in industrial sewing, about 60 percent of Pfaff's sales are industrial sewing machines, with most of the remainder consumer sewing machines. Singer's sales in 1998 were about $1.3 billion.

Visit the company's Web site at: www.singer-nv.com.

This press release includes forward-looking statements within the meaning of the U.S. Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release, including, without limitation, statements regarding the company's future performance and financial position, liquidity and capital resources, projected property sales proceeds, and strategy, and plans and objectives of management for the restructuring of current operations and for future operations, are forward-looking statements. Such forward-looking statements are based on beliefs of, assumptions made by and information available to management currently, and these statements necessarily involve numerous risks and uncertainties, many of which are outside the company's control. These risks and uncertainties include, but are not limited to, the success of the company in implementing its financing plans, and its manufacturing and marketing restructuring and cost reduction programs, in a timely and efficient manner; general economic conditions in the company's markets, particularly in Asia and other developing countries; exchange rates, particularly in currencies in which the company makes significant sales; levels of consumer spending; and the company's ability to continue to win acceptance of its products and services, which are offered in highly competitive markets. No assurance can be given that expectations reflected in such forward looking statements will prove to have been correct, and actual results may differ significantly from those in any forward looking statements. The company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.